Canaccord Genuity trims target price on Moonpig

(Sharecast News) - Analysts at Canaccord Genuity said Moonpig's full‑year results marked a positive start for new chief executive Catherine Faiers, with revenue and adjusted underlying earnings landing in line with March guidance and earnings per share growth of 19.5% coming in well ahead of the 8-12% range. Canaccord Genuity said the outperformance was driven by customer growth, higher average order values, a strong recovery at both Greetz and Experiences, and support from Moonpig's ongoing capital‑return programme. While Moonpig's new financial framework points to lower mid‑term growth, Canaccord said the operational drivers behind FY26's improvement should continue to support growth.

Faiers has set out a strategy focused on extracting more value from the existing platform, improving customer understanding and supporting engagement across the lifecycle. Range expansion and higher multi‑gift attach rates remain the key levers for average order value, though Canaccord noted the attach‑rate formula was still being refined.

Operationally, the Moonpig brand delivered 8.6% revenue growth, with Greetz up 4.5% and Experiences narrowing its decline to 4.5% from 19% a year earlier. Order volumes rose 2.1%, supported by a 2.8% increase in active customers, while AOV grew 5.7% on the back of trading up to higher‑priced gifts, card format upsell and greater use of tracked delivery. Canaccord acknowledged investor concerns about the sustainability of tracked‑delivery‑led gains but said management sees further pricing levers across the business.

Despite Moonpig's strong market position and visible growth outlook, the Canadian bank noted that its shares trade on a 8.1x FY27E enterprise value-to-EBITDA ratio, around 12x earnings and an 8.3% free cash flow yield. Canaccord reiterated its 'buy' rating on the stock, but trimmed its DCF‑based price target to 300p from 310p to reflect the lower estimates.





Reporting by Iain Gilbert at Sharecast.com